The Prime Minister’s Office has confirmed that Tina Hydro Project is planned to be owned and operated by a joint venture between Solomon Islands government and K-water.
Under this arrangement K-water, the Korean government corporation for water and hydropower, will form a joint venture with Solomon Islands government via its commercial arm, the Investment Corporation of Solomon Islands ( ICSI).
The Resource Sector Division of the Prime Minister’s Office, explains that technical agencies will discuss the commercial arrangements of the joint venture company in a technical workshop later this month. The technical workshop will discuss shareholding arrangements between K-water which is to hold 51-percent shares, while ICSI will hold 49-percent shares.
K-water has engaged specialist financial, technical and legal advisors for support in finalising Project Company arrangements.
The Tina River Hydro Development Project Office in the Ministry of Mines, Energy and Rural Electrification says the Korean major Partner, K-water will contribute its expertise in building and operating the hydro project. K-water operates a wide range of large hydropower facilities in Korea as well as overseas.
The government is a central player in the Tina River Hydro Project through the different roles it will fulfil, and is taking a high level policy approach to ensure coordination and effective implementation.
Through ICSI, the government will hold 49-percent shares in the development company; it will also act as the on-lender for the large volumes of concessional finance it has secured from international sources.
Furthermore, the government is the 100% owner of SolPower through the Minister of Mines, Energy and Rural Electrification and the Minister of Finance and Treasury.
Under the Tina Hydro project arrangement, SolPower will be responsible for purchasing and distributing the competitively priced renewable power generated by Tina Hydro as a partial replacement for the current power which it relies on imported diesel for.